Trent Engine (Hansard, 13 November 1997)

§ Mr. Battle

I am pleased to announce that the Government have agreed to provide a long-term investment of up to £200 million over the next four years to Rolls-Royce plc. towards the design and development of its important new range of Trent engines. This will extend the Trent family to enable it to power all the world's new large aircraft. For example, the Trent 500 has been selected by Airbus Industrie as the powerplant for the new A340-500/600, in a privileged partnership announced at the Paris Air Show in June 1997.

The Government's support reflects the importance of this project to the UK economy and the clearly established need for public funds to enable it to go ahead. The agreement with Rolls-Royce embodies the Government's commitment to public-private partnerships and is a marked departure from the previous administration's approach to the civil aviation industry.

The investment is genuinely commercial, and reflects the risk that the taxpayer has been asked to share. The Government and Rolls-Royce will share, as partners, in the future rewards from this engine programme. The Government intend that this approach will inform the consideration of any future applications for support from the civil aviation industry.

627W

Rolls-Royce is the 10th largest UK investor in research and development and much of its technology is diffused to other sectors of the Uk economy. The Trent engine has already demonstrated its technical excellence and these new developments will help to ensure that Rolls-Royce remains a world leader in aero-engine technology and continues to provide a centre of excellence in the United Kingdom. Success in this new Trent range will bring wider benefits to the many companies which supply Rolls-Royce, and increase competition for worldwide sales of aero-engines to the advantage of UK airlines and airline passengers.

My Department will be discussing this investment with the European Commission.